Entries by mary WAMBUGU

Suppose you are hired as a consultant forTailways, Inc., just after a recapitalization thatincreased

August 26, 2019 in /by

Question Suppose you are hired as a consultant forTailways, Inc., just after a recapitalization thatincreased the firm’s debt-to-assets ratio to 80 percent. The firm has the opportunity to take on a risk-free project yielding 10 percent, which you must analyze. You note that the risk-free rate is 8 percent and apply what you learned in […]

 

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david needs to borrow money to start a business. suppose that the saving rate in the country is expected to increase. assuming that nothing else changes this means that if david borrows now, his cost of borrowing money is expected to ______________ due to the following factor: a. rising interest rates b. decreasing preference for future consumption c. increasing preference for future consumption

August 26, 2019 in /by

david needs to borrow money to start a business. suppose that the saving rate in the country is expected to increase. assuming that nothing else changes this means that if david borrows now, his cost of borrowing money is expected to ______________ due  to the following factor: a. rising interest rates b. decreasing preference for future […]

 

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which of the following events could decrease the cost of the money a. the federal deficit increases b. the federal Reserve purchases Treasury securities held by banks c. inflation increases d. the country exports more than its imports

August 26, 2019 in /by

which of the following events could decrease the cost of the moneya. the federal deficit increasesb. the federal Reserve purchases Treasury securities held by banks c. inflation increases d. the country exports more than its imports    Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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Assume a firm’s cost of capital with zero debt is 0.15 and the cost of debt is 0.08.

August 26, 2019 in /by

Assume a firm’s cost of capital with zero debt is 0.15 and the cost of debt is 0.08.The value of the unlevered firm is V= $1,000,000 Where, $150,000 is the expected after tax earnings, with zero debt. If $500,000 of debt is substituted for stock (a) Determine the value of the firm (no cost of […]

 

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